Weekly recap: T-bill yield rises & US stocks continue to rally

This week, I was reminded that my income tax filing was due soon.

This was when it dawned upon me that the first quarter of 2024 is coming to an end.

And so far, the year is shaping up in unexpected ways.

For example, I was pleasantly surprised to see that the yield on the T-bill has stayed high at 3.8% in the latest auction, even as fixed deposit rates and savings account rates have been cut.

The strong rally in US stocks and gold may have also defied some investor expectations, especially with inflation remaining more sticky than expected. 

If you are wondering what the outlook is like for gold, join us at our upcoming event on 11 April, where we will share more about what to look out for. 

And if you have yet to do your income tax filing, we share a few tax relief measures which may help to lower your income tax bill.

It has been a busy few months for us at Beansprout, as we have been working hard to share more insight and roll out more tools to help you navigate the uncertain interest rate environment.

There's still a lot more that we hope to do in the future, but as I'd often reminder myself, what counts is also the steps we've taken to bring us forward.

Like us, we hope you would cheer the progress you've made however small or large, and just keep growing!

Gerald, Founder of Beansprout

💰GREAT START TO THE YEAR FOR US STOCKS 

What happened? 

US stocks ended the first quarter on a positive note, with the S&P 500 index rising by more than 10% in the quarter ending 31 March.  

This follows its stellar performance in 2023, which saw the index gain 24%.

What does this mean?

The positive momentum in US stocks was driven by increasing confidence that the Fed will cut interest rates in a few months’ time. 

Following the Fed meeting in March, investors are largely expecting that the first rate cut will be in June this year. 

In addition, increasing optimism on the Artificial Intelligence boom also lifted sentiment on stocks.

Why should I care? 

As we enter the second quarter, investors will be looking out for signs of whether we will indeed see the Fed starting to cut interest rates. 

Closer to home, the performance of Singapore’s benchmark index has lagged US stocks, with the Straits Times Index (STI) receding so far this year.

Despite the potential rate cuts, the performance of Singapore REITs remain lacklustre due to continued concerns about dividend cuts.

For investors who may be considering investing in industrial REITs, we compare Mapletree Industrial Trust with Mapletree Logistics Trust to find out which may be a better REIT. 

🚗  MOVING THIS WEEK

• Seatrium is expected to pay a US$57 million fine to Singapore authorities in connection with alleged corruption offences in Brazil, after taking into consideration what the group would have to pay the Brazilian authorities as part of the deferred prosecution deal. Seatrium expects that there would be no material impact on its net earnings in the current financial year, as it has already made S$76.5 million in provisions in the previous financial year.  Read our analysis of Seatrium here. 
• A consortium comprising CapitaLand Development, City Developments, Frasers Property, Mitsubishi Estate and Mitsui Fudosan (Asia) has submitted two bids, with different concept proposals, for the masters-developer site in Jurong Lake District. 
• Boeing’s CEO is stepping down at the end of the year as part of a leadership overhaul on growing customer frustration as the crisis centering the planemaker’s manufacturing quality and safety shows no signs of receding.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 THE BIG IMPORTANT STORY

T-bill yield rises to 3.8% despite demand surge. Why the jump?

The cut-off yield on the latest 6-month Singapore T-bill auction on 27 March rose to 3.80%.

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

• Monday, 1 April: NikkoAM-StraitsTrading Asia ex Japan REIT ETF ex-dividend date, Singapore Savings Bonds application open 
• Friday, 5 April: DBS ex-dividend date, US non-farm payroll data

Get the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

Source: SGX, Bloomberg, Refinitiv

🌱 PLANT THE SEED OF WEALTH

"The journey of a thousand miles begins with a single step"
 

- Lao Tzu, Chinese philosopher

💰 PROMO

Last Chance Rewards: 5 March Promos to Boost your Benefits

Learn more about the latest promotions from UOB, Stanchart, SingSaver, Webull and Moomoo before they end.

👩‍💻 WATCH OUR RECAP

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